SEC to Reevaluate Grayscale's Bitcoin ETF Software Following Court docket Ruling

In latest developments, the US Court docket of Appeals for the D.C. Circuit has mandated the Securities and Trade Fee (SEC) to reevaluate Grayscale Investments’ utility to transform its belief right into a spot exchange-traded fund (ETF). The court docket dominated the SEC’s preliminary rejection as “arbitrary and capricious”, marking a big victory for Grayscale in its authorized battle in opposition to the regulatory physique.

The lawsuit adopted constant rejections by the SEC of spot Bitcoin ETF functions citing market manipulation issues. This follow has been maintained below present SEC Chair, Gary Gensler, sparking discussions round his previous and present views on Bitcoin merchandise.

Gensler’s criticism of the SEC’s inconsistent method in the direction of Bitcoin ETFs and futures, voiced throughout a hearth chat on the 2019 MIT Bitcoin Expo, lately resurfaced on social media platforms.

The court docket ruling acknowledged similarities between Grayscale’s proposal and beforehand accredited Bitcoin futures ETFs. This might set a precedent for different companies searching for approval for related merchandise.

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